Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/289708 
Year of Publication: 
2022
Citation: 
[Journal:] Comparative Economic Research. Central and Eastern Europe [ISSN:] 2082-6737 [Volume:] 25 [Issue:] 3 [Year:] 2022 [Pages:] 27-42
Publisher: 
Lodz University Press, Lodz
Abstract: 
The aim of the article is to quantify and compare the impact of capital and labour tax on the economies of Central and Eastern Europe (CEE). The impulse-response functions presented in the paper show that output reacts differently to changes in the taxation of labour and capital. Although there is some heterogeneity in the magnitude and persistence of tax effects between the analysed CEE countries, the simulations generally indicate that the negative impact of increased capital taxation on GDP is stronger than for labour taxation. More importantly, however, the negative effects of higher taxation on capital are more persistent than in the taxation of labour. This is largely because higher capital taxation strongly reduces savings and the desired stock of capital, which has important long-term macroeconomic consequences.
Subjects: 
capital tax
labour tax
CEE countries
JEL: 
E62
H20
H30
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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